Contract - Duty of Good Faith - Atlantic Lottery Corp. Inc. v. Babstock (SCC, 2020)
. Atlantic Lottery Corp. Inc. v. Babstock
In Atlantic Lottery Corp. Inc. v. Babstock (SCC, 2020) the Supreme Court of Canada explains that recognizing a duty of good faith in contract is categorical (ie. by types of relationships), likely due to it's novel development in Canadian law:
[65] As this Court explained in Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494, however, not every contract imposes actionable good faith obligations on contracting parties. While good faith is an organizing principle of Canadian contract law, it manifests itself in specific circumstances. In particular, its application is generally confined to existing categories of contracts and obligations (para. 66). The alleged contract between ALC and the plaintiffs does not fit within any of the established good faith categories. Nor did the plaintiffs advance any argument for expanding those recognized categories.
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